The US dollar is back in action! America’s currency rose to its highest point against the euro since January 3rd this week, or almost two months, to 0.7659. How come? First, because automatic spending cuts worth $85bn have come into force in the States, following US leaders’ failure to agree a deficit reduction plan. That’s led investors to shelter in the safe-haven greenback. Second, because Italy remains in deadlock, following its weekend election. To put this into context, the US dollar was at 0.732 against the euro at the start of February, meaning it’s since climbed more than 3 cents. A $250,000 transfer is hence worth €8.475 more than a month ago. (Please bear in mind, these are … [Read more...] about US dollar to euro hits 2-month high, as US spending cuts kick in
euro to dollar
Euro wobbles as ECB hints at intervention to curb its strength
The common currency lost almost two cents against the pound last week, falling from 0.8691 on February 1st to 0.8541 today. Meanwhile, against the greenback it lost two and a half cents, tumbling from a multi-year high of 1.3662 to 1.3410 at the time of writing. Of course, these losses hardly undo the euro’s January gains. The common currency still sits close to historical highs against sterling and the buck. But what we’ve seen this week is that it’s rally isn’t endless. ECB to “monitor” the euro's strength To account for the euro’s losses this week, we can look to what’s typically been the chief mover of the euro exchange rate in the debt crisis, the European Central Bank. Speaking … [Read more...] about Euro wobbles as ECB hints at intervention to curb its strength
How high will the euro climb?
Since the start of the year, the common currency has jumped from 1.3031 against the US dollar to 1.3670, a gain of +4.9%. And against the pound sterling, the gains are even more pronounced, rising from 0.8131 on January 1st to 0.8641, or +6.27% higher just a month later. Now, while such rapid rises aren’t unprecedented in my experience, they’re notable, especially given that so very recently the Eurozone was in intensive care. To explain these gains, without a doubt the biggest factor is the turnaround in euro sentiment. In 2012, the talk was of the currency collapsing. Correspondingly, no one wanted to touch it, leading to outflows to relative havens such as the pound and US … [Read more...] about How high will the euro climb?
Mario Draghi: the closest thing the Eurozone has to a leader?
Mario Draghi: the closest thing the Eurozone has to a leader? Who leads the Eurozone? Having “saved” the euro last year, I think that title belongs to Mario Draghi, head of the ECB. This article looks at why that is, and why it’s less than ideal. One of the things for which Henry Kissinger is famous for asking is, “Who do I call, if I want to talk to Europe?” Well, the European Commission may have a President, in the form of José Manuel Barroso, but I doubt that anyone thinks he’s where the power in Europe lies. He’s closer to a glorified bureaucrat. Meanwhile, others might say that Angela Merkel is where power truly lives on the continent. Germany is after all Europe’s biggest … [Read more...] about Mario Draghi: the closest thing the Eurozone has to a leader?
What does 2013 hold in store for the euro?
For my part, I’d say the leaders of the Eurozone have pretty good reason to feel okay about how 2012 has gone. After all, they overcame the biggest challenge facing the currency union, that of doubts about its continued survival, while making big progress on a banking union, and keeping all its members on-board. I don’t think we should under-estimate just what an accomplishment this is. Back in July, when all you could read about were the inevitable Greek exit, Spanish bankruptcy, or wholesale Eurozone collapse, I moved quite a bit of my savings out of my Spanish account (I’m based in Madrid) to the UK, I was that concerned. For us to look at where we stand now and say, well, Greece … [Read more...] about What does 2013 hold in store for the euro?
Euro climbs as Eurozone banking supervisor agreed
Welcome to the Pure FX account of the latest changes in the euro exchange rate, covering the 7th to 14th December 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Down, but not for long? The euro gained against the pound and US dollar this week, reversing all of last week’s losses, as Eurozone leaders agreed a single banking supervisor for the currency zone. This takes the Eurozone a step closer to genuine fiscal union, and has been widely cheered by the financial markets. To be sure though, it hardly means the Eurozone is out of the debt crisis woods, and the agreement masks big … [Read more...] about Euro climbs as Eurozone banking supervisor agreed
Euro unchanged on Sandy, presidential election
Welcome to the Pure FX account of changes in the euro exchange rate, covering the 26th October to 2nd November 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Exchange rates Pound to euro: 1.2476 Pound to US dollar: 1.609 Euro to US dollar: 1.2896 As you can see above, the exchange rates stand unchanged this week, with the pound still close to its highest rate against the euro since early October. This largely reflects two things: one, the impact of Hurricane Sandy on the North Coast of the US, including the States’ financial centre of New York, and two, the Presidential election next … [Read more...] about Euro unchanged on Sandy, presidential election
Pound hits three week high as UK expands 1.0% in Q3
Welcome to the Pure FX account of changes in the euro exchange rate, covering the 19th to 26th of October 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Latest exchange rate changes Pound to euro: Last week: 1.2276 Today: 1.2457 Increase: +1.474% Pound to US dollar: Last week: 1.6038 Today: 1.6108 Increase: +0.436% Euro to US dollar: Last week: 1.306 Today: 1.2925 Decrease: –1.034% The UK pound reversed a four-month decline against the euro this week, gaining almost two cents against the common currency. This takes sterling back to a level we last saw in early October, when … [Read more...] about Pound hits three week high as UK expands 1.0% in Q3
Euro gains as Rajoy’s waiting game pays off
Welcome to the Pure FX account of changes in the euro exchange rate, covering the 12th to 19th of October 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Latest exchange rate changes Pound to euro: 1.2398 to 1.2276 Pound to US dollar: 1.6036 to 1.6038 Euro to US dollar: 1.2936 to 1.306 Who would have thought it? The euro continued its slow ascent against the pound and US dollar this week, bouncing back ever since its July nadir of 1.20 against the greenback. This is chiefly as Spanish prime minister Mariano Rajoy’s strategy of simply waiting out the markets pays off, and events turn in … [Read more...] about Euro gains as Rajoy’s waiting game pays off
Euro climbs as ECB’s Draghi vows to do “whatever it takes”
Welcome to my weekly account of changes in the foreign exchange rate, covering the 20th to 27th July 2012. This is intended as a brief guide to what’s affected the euro this week, to help you decide the best time for you to change currencies. Exchange rate changes: Pound to euro: 1.2807 to 1.2804 (-0.023%). Pound to US dollar: 1.5478 to 1.5692 (+1.383%) Euro to US dollar: 1.2094 to 1.2297 (+1.679%) What’s affected the foreign exchange rates this week? 1. Mario Draghi vows to save the euro. It’s been a tough week for the US dollar, which has lost two cents apiece to the pound and euro. This is because, speaking yesterday at a conference in London, president of the European … [Read more...] about Euro climbs as ECB’s Draghi vows to do “whatever it takes”